In June, Nevada's gaming and tourism data showed little change as the fiscal year came to an end for both Las Vegas and the state. Gross gaming revenue statewide reached $1.34 billion, a modest increase of 0.8% from the same month last year, according to the Nevada Gaming Control Board. The total for the fiscal year ended at $16 billion, reflecting a growth of approximately 2.5% over the previous year.
On the Las Vegas Strip, gross gaming revenue took a slight dip of 1% year-over-year, totaling $754.6 million for June. After experiencing a downturn last year, the Strip rebounded this fiscal year, concluding with a 2% increase, bringing its fiscal total to $8.9 billion. A significant factor contributing to the decline in June was the reduced performance in baccarat, which generated $102.7 million, down 20% from the previous year, as reported by the NGCB.
Other areas in southern Nevada, however, reported encouraging growth this fiscal year. Mesquite led the percentage increase, showing a rise to $207 million, up 6.6%. North Las Vegas climbed 4%, the Boulder Strip 3.6%, and downtown Las Vegas improved by 3%, all concluding the year positively. Both the Boulder Strip and downtown areas reported around $1 billion in gross gaming revenue, while the locals market in Las Vegas remained flat just under $2 billion.
According to the Las Vegas Convention and Visitors Authority, visitation in June remained stable at 3 million, although a strong conference schedule saw this segment increase by 25%. The overall occupancy rate in Las Vegas stood unchanged at 78%, while average daily rates and revenue per available room on the Strip experienced a decline of about 5%.
As for passenger traffic at Harry Reid International Airport, data for June is still pending, but a report from May indicated a decrease of 6% year-to-date.
In contrast, Reno showcased remarkable performance both in June and for the entire fiscal year. The city's June gross gaming revenue climbed to $81.6 million, marking a 20% increase over last year, the highest growth among markets tracked by the NGCB. Reno concluded the fiscal year with a GGR of $825.3 million, up 7% year-over-year.
Tourism in the Reno-Tahoe area has surged significantly this year, with air traffic increasing by 4% compared to last year, as announced by Reno-Tahoe International Airport. Passenger counts in April and May reached their highest levels in nearly two decades. In the first quarter, Reno’s taxable room revenue hit $106 million, setting a record for the city.
Looking ahead, market dynamics are expected to shift. Caesars Entertainment, which has its roots in Reno following its acquisition by Eldorado Resorts in 2020, will relocate to Houston under Fertitta Entertainment's management. Caesars operates three properties in downtown Reno: the Eldorado, Silver Legacy, and Circus Circus.
Conversely, other operators are investing heavily in growth initiatives. The Grand Sierra Resort is set to undergo a multi-phase expansion estimated at $1 billion, while the J Resort recently completed the first phase of its renovation, which cost $400 million.
On the employment front, Nevada recorded a 2% increase in nonfarm jobs in June compared to last year, according to data from the state's Department of Employment, Training and Rehabilitation. The leisure and hospitality sector alone added 1,700 jobs, the highest of any sector.
In the Las Vegas metro area, employment remained flat month-over-month but saw a 2% increase year-over-year. Similarly, the Reno metro area experienced stability in month-over-month employment with a slight year-over-year growth of 1.5%.
“Over the past year, Nevada has added jobs at a brisk pace, and that trend continued in June with over two percent growth in jobs over the past year. The labor force participation and unemployment rates both decreased, mirroring national trends this month. Overall, the state's labor market stayed strong in June,” stated David Schmidt, Chief Economist at DETR.
